U.S. Department of Agriculture: Animal and Plant Health Inspection Service
United States Department of Agriculture Wildlife Services: Staff Publications
Economic Analysis of Indemnity Payments for Wolf Depredation on Cattle in a Wolf Reintroduction Area
Document Type
Article
Date of this Version
2014
Citation
Published at Univ. of Calif., Davis. 2014. Pp. 413-418.
Abstract
Mexican gray wolves were reintroduced into New Mexico and Arizona in 1998. When wolves kill a producing cow, ranchers in the region are eligible to receive an indemnity payment equal to the market value of the lost animal. We developed a model that allows estimation of the present value of the revenue stream that a cow or herd provides and find that if a producing cow is killed, the decrease in the present value of the rancher’s revenue stream is about $1,230. Mean indemnity payments are currently $1,000, implying ranchers are not being sufficiently compensated.
Comments
U.S. Government Work